Contribution margin, decision making. Lurvey Men’s Clothing’s revenues and cost data for 2011 are as follows: Revenues Cost of goods sold Gross margin Operating costs: Salaries fixed Sales commissions (10% of sales) Depreciation of equipment and fixtures Store rent ($4,500 per month) Other operating costs $170,000 60,000 20,000 54,000 ƒƒ45,000 $600,000 ƒ300,000 300,000 ƒ349,000 Operating income (loss) $ƒ(49,000) Mr. Lurvey, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $30,000 variable costs, which vary with sales volume, and $15,000 (fixed) costs. Required 1. Compute the contribution margin of Lurvey Men’s Clothing. 2. Compute the contribution margin percentage. 3. Mr. Lurvey estimates that he can increase revenues by 15% by incurring additional advertising costs of $13,000. Calculate the impact of the additional advertising costs on operating income.  
For a correlation of -.64 between x and Y, each 1 - SD change in zx, corresponds to a predicted change of ___________SD in zy. A researcher says that 50% of the variance in blood pressure can be predicted for HR and that blood pressure is positively associated with HR. Suppose that you want to do statistical significance tests for four correlations and you want your EWa to be .05 What PCa would you use if you apply the Bonferroni procedure? Why should researchers be very cautious about comparison of correlations that involve different variables? .  

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